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Forklift Propane Prices – Make Sure Your Price is Competitive!

Many companies use propane forklifts to transport inventory within their warehouse and yard facilities. In many cases, propane forklift operators are faced with the same challenge as propane home heating customers regarding propane prices. The challenge is making sure that their propane supplier is charging them competitive forklift propane prices for each future propane delivery. The following provides some tips to ensure that your propane supplier is charging you competitive propane prices for each of your forklift fuel deliveries:

Most propane suppliers will deliver and charge forklift propane fuel in one of two ways: (1) By the propane cylinder, or (2) Bulk delivery by the gallon. If your propane is delivered by the cylinder, find out the rated capacity of each cylinder. The common propane forklift cylinder capacities include approximately 8 gallons or approximately 10 gallons. Ask your propane supplier to share the exact propane cylinder capacity applicable to your account. With this information, you will be able to find the propane price per cylinder and divide it by the propane cylinder capacity to determine your propane price per gallon. For example, if your propane price per cylinder is $16, and your propane cylinder capacity is 8 gallons, your approximate propane price per gallon is $2 (before taxes and delivery fees).

When comparing pricing after a qualified party has safely filled a propane container, either a stationary tank or portable cylinder, it is important to recognize that the maximum quantity of liquid is less than 100% of the physical capacity for safety reasons. The tank or cylinder will have roughly 75% to 85% liquid content with the remainder being vapor content, which is a safety measure applicable to all propane containers. Therefore, to accurately compare propane pricing, you should contact your supplier’s office to ask for advice on comparing propane prices for larger stationary bulk tanks (generally compared by the gallon price) and smaller portable forklift cylinders (generally compared by cylinder price – depending on the cylinder safe filling capacity based on weight). Your propane supplier can provide further explanation around maximum safe propane container filling procedures to ensure that you are comparing propane pricing accurately between container sizes.

If your company is not on a fixed propane price per gallon plan, contact your propane supplier and request that your propane supplier forward your forklift propane prices (per cylinder or propane price per gallon for bulk propane deliveries to a larger stationary propane tank) 24 to 48 hours before each propane delivery via voice mail, text, e-mail or fax. This will give you a brief window of time to contact competing propane suppliers in your area to compare your quoted propane price per gallon before receiving each propane delivery. If you find that your suppliers’ propane price per gallon for your pending delivery is not competitive, contact your supplier before the arrival of your pending delivery and challenge your propane price per gallon. In some cases, if you provide supporting competitive information on forklift propane prices offered by other suppliers in the area, your supplier may adjust your propane price per gallon during your telephone conversation. Make sure that you make a note of any verbal propane price adjustments made during your telephone conversation for comparison to your billing statement.

Contact your propane supplier to inquire about additional fees that may apply to your forklift propane deliveries. If your supplier is charging extra propane service fees (Hazmat Fees, Delivery Fees, cylinder or tank rental fees, etc.), contact all other suppliers in your area to find out if the other suppliers charge the same (or other fees). You many find that switching to another local propane supplier that does not charge extra fees can help you save money on your annual cost of propane. Conversely, you may find that your current propane supplier is charging a competitive pricing program. However, it makes sense to conduct a quick propane price comparison study between all local propane suppliers before each delivery to ensure that all future deliveries are priced in a highly competitive range.

Visit neighboring companies in your area to find out propane services and propane pricing offered by other suppliers. You many find a significant difference in propane pricing between your supplier and the propane supplier that delivers to other companies in your immediate area. Will you save money by changing to another propane supplier? Will the supplier pay your neighboring company a referral fee if your switch to their service? It pays to shop around!